KASB Morning Shout June 25th, 2021

The Pakistan Stock Exchange staged a rebound in yet another range bound session on Thursday and the KSE-100 index advanced just 62 points as investors adopted a wait-and-see strategy in view of the ongoing Financial Action Task Force (FATF) meeting.

KASB Market View

All focus will be on the upcoming FATF Plenary meeting, which is scheduled this week (Jun 21-25). Recent reports highlight that Pakistan is largely compliant with 26 out of the 27 action points, increasing the likelihood of the country emerging out of the ‘Grey List’. We expect currency depreciation to spark inflationary concerns that might dampen the investor’s sentiments.

National News

IMF has shown ‘flexibility’ on demands, Tarin tells NA panel

ISLAMABAD: At a time when its economy is reviving, the International Monetary Fund (IMF) has advised Pak­is­tan not to leave its ongoing program while Islam­abad is planning to launch Euro­bonds worth $2.5 billion to boost its foreign exchange reserves

https://www.dawn.com/news/1631330/imf-has-shown-flexibility-on-demands-tarin-tells-na-panel

IMF declines to say disbursements to Pakistan under bailout programme halted

The International Monetary Fund (IMF) is holding open, constructive discussions with Pakistan as part of a sixth review of the country’s 39-month, $6 billion financing program that began in 2019, IMF spokesperson Gerry Rice said on Thursday

https://tribune.com.pk/story/2307032/imf-declines-to-say-disbursements-to-pakistan-under-bailout-programme-halted-1

Govt given power to meet IMF’s tariff condition

ISLAMABAD: Senate Standing Committee on Power on Thursday granted powers to Federal Government to impose surcharge at the rate of 10 per cent of total revenue as per requirement of power sector as a condition of the International Monetary Fund (IMF).

https://epaper.brecorder.com/2021/06/25/1-page/890985-news.html

Foreign exchange: SBP reserves fall $311m to $16.1b

KARACHI: The foreign exchange reserves held by the central bank fell 1.89% on a weekly basis, according to data released by the State Bank of Pakistan (SBP) on Thursday

https://tribune.com.pk/story/2307019/foreign-exchange-sbp-reserves-fall-311m-to-161b

Pakistan Faces Oil Shortage Yet Again

Federal Energy Minister, Hammad Azhar, has explained the likely energy shortfall in the country. While talking to reporters informally in the National Assembly’s lobby, Azhar said that the expected dry-docking of the LNG terminal may cause a temporary shortage but will be recovered within few days.

https://propakistani.pk/2021/06/24/pakistan-faces-oil-shortage-yet-again/

Cherat Cement approves Rs34b greenfield plant in KP

Cherat Cement Company Limited announced on Thursday that it has approved the installation of a Rs34-billion greenfield plant in Khyber Paktunkhwa that will have a capacity of 11,000 tons per day.

https://www.brecorder.com/news/40102690/cherat-cement-approves-rs34b-greenfield-plant-in-kp

Pakistani rice exports decline by 14pc

LAHORE: Lower rates of Indian rice, exorbitant freight charges and higher buying by the importing countries last year because of Covid-19 hit the exports of rice from Pakistan hard as during the first 11 months of the current financial year, Pakistani rice exports declined by 14 percent as compared to last year.

https://epaper.brecorder.com/2021/06/25/18-page/891115-news.html

Removal of FED on tribal areas; Govt move to destroy steel sector, other industries: PALSP

ISLAMABAD: The government decision of removal of the Federal Excise Duty (FED) on erstwhile tribal areas will be most damaging for the entire industry of the country, particularly the steel sector.

https://epaper.brecorder.com/2021/06/25/6-page/891023-news.html